Forbes Earnings Preview: Intuitive Surgical
By Narrative Science
Analysts have become increasingly bearish on Intuitive Surgical (ISRG) in the month leading up to the company’s fourth quarter earnings announcement schedule for Thursday, January 19, 2012. The consensus analyst estimate has moved from $3.36 a share to the current prediction of earnings of $3.34 a share.
What to Expect:
The current Wall Street consensus is 10.6% higher than the year-ago quarter, when the company reported earnings of $3.02 per share.
The consensus estimate has increased from $3.23 over the past three months. Analysts are projecting earnings of $11.89 per share for the fiscal year.
Revenue is projected to be 24.3% above the year-earlier total of $389.3 million at $483.7 million for the quarter. For the year, revenue is expected to come in at $1.74 billion.
Trends to Watch For:
In each of the last four quarters, the company has seen double-digit year-over-year revenue growth. Over that span, the company has averaged growth of 22.4%, with the biggest boost coming in the most recent quarter when revenue rose 29.7% from the year earlier quarter.
The company has reported increasing profit for three straight quarters. In the most recent quarter, net income rose by 41.3% from the year-earlier period. Net income rose 32.4% in the quarter before that, and 22% in the first quarter.
Analyst Ratings:
Analysts generally think investors should stand pat on Intuitive Surgical, with eight of 13 analysts rating it hold. Analysts have become more cautious about the stock in the last three months.
Competitors:
Intuitive Surgical designs, manufactures, and markets da Vinci Surgical Systems, EndoWrist instruments, and surgical accessories. One of Intuitive Surgical’s main competitors in the healthcare equipment and supplies industry, Medtronic (MDT), will report earnings on February 21, 2012. Other competitors in the healthcare sector include: Stryker (SYK), Synovis Life Technologies (SYNO), and CryoLife (CRY).
Over the past quarter, the stock price has increased from $417.62 on October 19, 2011 to $459.44.
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